TRAVIS COUNT Y, TEXAS Popular Annual Financial Report For the Fiscal Year Ended September 30, 2017 Nicki Riley, CPA Travis County Auditor TRAVIS COUNTY, TEXAS Cover Photos Northeast Metro Park The 349-acre Northeast Metropolitan Park is a multi-purpose recreational area with soccer fields, multi-use fields, baseball fields, a cricket field, basketball court, tennis court, BMX racetrack, and a skate park. Amenities include restrooms, playgrounds, group shelters, picnic tables with grills, concession building for rent, and a water play area (splash-pad). A two mile concrete sidewalk follows along Gilleland Creek in the park, making it ideal for biking, jogging, or walking while observing nature. The Northeast Metro Skate Park opened Tuesday, September 18, 2012. It boasts 41,450 square feet of concrete action to enjoy! There’s plenty of room to learn or hone your street and bowl skills. Travis County Parks’ BMX Racetrack opened in 2015 and ranks among the top tracks in the nation. It is one of few to meet new UCI (Union Cycliste Internationale) specifications as well as all USA BMX requirements. The 5M start hill propels riders down the first 30 foot wide straight to the first asphalt turn. In all, the track has three turns and runs 1,000 feet. A special coating process called Skimming has been applied to the surface to maintain uniformity and to help weatherize the track. In addition to the world class track interior, additional features such as a covered staging area, covered viewing area, and accessible concession and restroom areas make this track one of a kind. Amenities Page 1 of 21 TRAVIS COUNTY, TEXAS Table of Contents Cover Photo Description 1 Letter from the County Auditor 3 Economic Condition 4 Travis County History Timeline 7 Property Taxes 9 Financial Position 11 County Functions 15 Capital Assets & Debt 17 Awards 19 Travis County Organizational Chart 21 Travis County Auditor’s Office Nicki Riley, County Auditor Patti Smith, First Assistant County Auditor General Ledger & Disbursements Auditing: Financial Systems Maintenance & Support: Melinda Grahmann, Chief Asst II Christina Adair, Director Murtuza Khan, Manager Mike Crawford, Manager Robyn Wright, Manager Grants Auditing & Financial Reporting: Risk Evaluation & Consulting: DeDe Bell, Manager David Jungerman, Chief Asst I Consolidations & Financial Reporting: Revenue Estimation & Financial Analysis: Kathryn Madden, Chief Asst I Daniel Wilson, Chief Asst I Financial Systems Integration & Reporting: Payroll & Benefits Auditing: Kelly Allen, Manager Bernadette Gutilla, Manager Page 2 of 21 TRAVIS COUNTY, TEXAS Letter from the Auditor Message from the County Auditor: I am pleased to present the Travis County Popular Annual Financial Report (PAFR) for the fiscal year ending September 30, 2017. The purpose of this report is to provide an overview of the County’s finances, in a format that is readable and easy to understand. The PAFR is designed to provide a summary of the County’s financial position as well as an overview of economic, demographic, and other trends in the local economy. The PAFR was prepared by the Travis County Auditor’s Office and was generated using financial information taken from the 2017 Comprehensive Annual Financial Report (CAFR) that was audited by Atchley & Associates, LLP. The audit of the CAFR received an unmodified opinion, which indicates that the financial statements are prepared according to Generally Accepted Accounting Principles (GAAP) and are free of material misstatements concerning the overall financial position of the County. The PAFR summarizes and simplifies the information contained in the CAFR and is not intended to replace the CAFR. The CAFR contains the full financial statements and note disclosures for all activities, funds, and component units, prepared in accordance with GAAP. Information in the PAFR is unaudited and not in accordance with GAAP due to condensed and simplified presentation. For a complete set of County financials, please refer to the CAFR, which is available on the Travis County website at https://www.traviscountytx.gov/county-auditor/financial-reports. I invite you to share any questions, concerns, feedback or recommendations you may have by contacting us at 512 -854-9125. Sincerely, Nicki Riley, CPA Travis County Auditor Page 3 of 21 TRAVIS COUNTY, TEXAS Economic Condition Travis County has enjoyed a relatively stable economy for over a decade with an unemployment rate ranging from 4.5% in September 2008 to the current rate of 2.8%. The County has consistently experienced an unemployment rate lower than the national rate, even during the sluggish economic period from 2009 to 2011. While the national annual unemployment rate was at 8.9% or higher during those years, Travis County’s rate peaked at 7.5% in July 2009. For many years, Travis County was known largely for two things, state government and the University of Texas, but over the past five years, the private sector has grown about 25%. A broad economic base, composed of real estate, leisure and entertainment, medical, and Travis County is the home of the state’s flagship technology sectors, as well as a sizable federal, university, the University of Texas at Austin, as well state, and local government presence, provides as other institutions of higher education such as St. Edward’s University and Austin Community College. a strong base for economic growth. TOP TEN EMPLOYERS State of Texas The University of Texas/AusƟn City of AusƟn HEB Grocery Co. Federal Government Dell, Inc. AusƟn Independent School District Seton Healthcare Family Walmart Stores, Inc. St. David’s Healthcare Page 4 of 21 Travis County 1,022.1 square miles in central Texas (989.3 of land and 32.8 of water) 200 miles south of Dallas/Fort Worth 160 miles west of Houston 80 miles northeast of San Antonio 67.50 F = Average temperature 420 F = Average low in January Also contributing to the County’s growth is the mild climate of the area. With an average temperature of 67.5 0 97 F = Average high in August degrees, Travis County provides an excellent environment 34 inches = Average yearly rainfall for the many music events, sports activities, and outdoor events that take place each year, all of which contribute 270 days = Growing season substantially to the area’s economy. The Austin area has a lively and diverse leisure industry, which includes the Texas Stars, the top affiliate of the National Hockey League’s Dallas Stars. Also here are University of Texas sports teams, the Austin Spurs of the NBA G League, and Triple-A baseball. Austin has long been called the “Live Music Capital of the World” in part due to the South by Southwest Music Festival held annually in the spring and the Austin City Limits Festival held annually in the fall. In addition, Austin also boasts many live music venues, a number of which are located in the famous downtown East Sixth Street Entertainment District. Expedia ranked Austin No. 1 on their list of “Super Cool” cities to visit in the US 19 = Number of developed County parks 4,483 = Developed park acreage 8 = Boat ramps Page 5 of 21 With a healthy economy, pleasant climate, and a myriad of activities, the County continues to experience steady growth. Median Family Income In 2017, Austin was ranked number one by U.S. News and World Report as the Best Place to Live in the United States. And, Austin was rated by LinkedIn and Zillow as the second best “Sweet Spot” city where job opportunity and affordable housing intersect. In fiscal year 2017, the number of housing units sold in the Austin area totaled 33,757, a 3.9% increase over fiscal year 2016, with the average selling price increasing 5.9%. Single Family Home Sales in the Austin Area Housing in Austin Area: (in thousands) 2017 units sold 33,757 2016 units sold 32,505 Increase in units sold 3.9% 2017 average home price $365,201 2016 average home price $344,765 Increase in average selling price 5.9% The Austin-Round Rock Metropolitan Statistical Area (MSA), which includes all of Travis County, continues to grow at a dramatic pace, surpassing the two million- person mark in the fall of 2015, according to the City of Austin demographer. This region is projected to continue growing at a healthy 4.4% rate in the near term. Austin has been ranked number one, in Forbes magazine as America’s fastest growing areas, three out of the last five years. Page 6 of 21 TRAVIS COUNTY, TEXAS Travis County History Timeline August 9, 1809 – William Barret Travis, namesake of Travis County, is born. March 2, 1836 – The Texas Declaration of Independence is adopted at Washington-on-the-Brazos, establishing the Republic of Texas. March 6, 1836 – William Barret Travis dies at the Alamo. August 1, 1839 – The first sale of town lots in the new capital of the Republic, which is named for Stephen F. Austin, is held. December 27, 1839 – The City of Austin is created by the Republic of Texas Congress. Austin 1887 Texas 1836 William B Travis January 19, 1840 – Austin is approved as the capital of the Republic of Texas. January 25, 1840 – Travis County is established by the Republic of Texas Congress. February 21, 1840 – The first election for county officials is held. Recorded population was 856. February 28, 1845 – The Republic of Texas is annexed by the United States. December 29, 1845 – Texas becomes the 28th state. 1855 – The first official Travis County Courthouse is constructed at 4th and Guadalupe (demolished in 1906). 1876 – The second Travis County Courthouse is constructed at 11th and Congress Avenue (decommissioned in 1931, demolished in 1964). April 14, 1930 – Judge George S. Mathews and the Commissioners Court buy land at 10th and Guadalupe for the construction of the third Travis County Courthouse.